The global financial crisis has hit Dubai particularly hard and Dubai’s property bubble has burst in a big way. Banks and property companies are renegotiating or defaulting on contracts left and right. The lawsuits are already starting to fly according to Reuters news agency.
The Burj Dubai reached it’s final height of 818 meters recently, but we are hearing an interesting rumor that, the Burj Dubai is now wholly owned by the Abu Dhabi government (see the recent Dubai bond issue) and as “punishment,” for their vaulted ambitions, the building will be left empty for at least one year after it is finished being fitted out.
More on Property Investment Rumors – Burj Dubai Will sit Empty for a Year
The Dubai International Property Show opened today with almost “no visitors” according to Property wire.
‘These are the difficult times and we must admit the reality and then find the solution,’ said Abdullah M Al Shizawi, managing partner of Heart of Capital.
More on Dubai International Property Show a Flop and Another Broker in Dubai Goes Under
Dubai’s major developers are canceling or delaying projects until such times as the property market returns to boom time
Nakheel have canceled all sales on Palm Jebel Ali until further notice. Ali Mansour, project director, said,
More on Projects in Dubai Cancelled or on Hold – Dubai Crash Update
After months of press releases and government promises that there will be no such thing as a bubble in Dubai, the big boys of Dubai are finally saying, “Beam me up Scotty, I think I’m in trouble.”
More on Dubai Bubble Bursts – It’s official, but how far will it fall?
Some time ago, we suggested that Dubai’s property bubble was about to burst. A recent Dow Jones report suggest that time has come. A six-year real estate boom in Dubai that spurred a $475 billion building frenzy has ended, according to agents who say sales are collapsing amid fears that the global economic downturn will hit the sheikdom.
Record attendances notwithstanding, the mood at this year’s Dubai Cityscape could best be described as “wary,” and the exhibition failed to lie up to expectations investment-wise. Despite announcements of new developments of epic proportions, this failed to translate into sales.
